Zimmer Biomet Holdings Inc Early Read on 2Q26 Results

研报英文原文证据摘录

J P M O R G A N

North America Equity Research

05 August 2026

Zimmer Biomet Holdings Inc

Early Read on 2Q26 Results

Neutral

ZBH, ZBH US

Price (04 Aug 26):$95.81

Medical Supplies & Devices

Zimmer Biomet reported stronger 2Q26 results before the open on Wednesday that

drove positive guidance revisions on the top and bottom lines. Sales of $2.18B

(+4.0% reported) beat consensus by $42M, with stronger prints from Hips (+

$16M), SET (+$14M), and Other (+$28M), all of which offset weaker Knees ($15M). This supported EPS of $2.07, a $0.06 beat, with the stronger top line

helping to drive a better gross margin (+60bps) even as opex (+90bps) came in

higher. On the one hand, we believe the 75bps raise to organic growth guidance at

the midpoint was better than expected (vs. a 25bps to perhaps 50bps raise by the

buy side), with EPS upside flowing through to the new range of $8.47-8.59 (vs.

$8.40-8.55). On the other, we'll be looking for an explanation for the weaker Knee

performance now that we’ve seen prints from all the major large joint

reconstruction manufacturers. Net-net, at ~11x 2027E earnings, this report

should be enough to move shares higher.

Updated organic revenue growth guidance now points to +2.25-3.25% for

the year, up 75bps at the midpoint, ahead of what we think were investor

expectations for a 25-50bps raise. Reported revenues are now expected to

grow +3.9-4.9%, or +3.4-4.4% after backing out +50bps of Fx. After excluding

110bps from the acquisition of Paragon 28, this points to +2.25-3.25% on an

organic basis. On the bottom line, EPS is moving up to $8.47-8.59, up from

$8.40-8.55 prior.

Diving into segment-level detail, revenues came in ~$42M ahead of

consensus, driven by beats in Other (+$28M), SET and CMFT (+$14M),

alongside upside in Hips (+$16M), which more than offset a miss in Knees

(-$15M). Knees of $829M grew +0.4% reported, with the US up +1.4% (-$2M

versus consensus) and International down -0.9% (-$14M versus consensus),

while Hips of $563M grew +5.0% with the US up +5.9% (+$9M versus

consensus) and International up +4.0% (+$7M). SET and CMFT of $586M

grew +6.4% reported, and Other of $199M grew +21.1% reported.

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